J.C. Penney's Credit Worthiness Downgraded

Fitch not confident in new pricing plan or restoring sales

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J.C. Penney implemented their new "fair and square" pricing plan this month to mixed reviews from analysts.

Updated at 3:42 PM CST on Wednesday, Feb 22, 2012

Plano-based retail giant J.C. Penney may be in credit trouble.

Fitch Ratings downgraded Penney to junk territory with a BB+ credit rating. Penny had been rated BBB-, the lowest level on the investment-grade scale.

Fitch worries the company won't be able to get customers to buy into their new pricing structure while simultaneously improving sagging sales that, along with restructuring costs and management changes, resulted in a 3Q loss of $143 million.